EXPLANATORY STATEMENT
STATUTORY RULES 1989 NO. 246
Issued by the Authority of the Minister for Resources
BARLEY RESEARCH LEVY ACT 1980
BARLEY RESEARCH LEVY REGULATIONS (AMENDMENT)
Section 5 of the Barley Research Levy Act 1980 (the Act) imposes a levy on barley delivered by the grower to another person other than for storage on behalf of the grower.
Section 6 of the Act provides that the rate of levy shall not exceed 75 cents per tonne.
Subsection 9(1) of the Act provides that the Governor-General may make regulations, not inconsistent with the Act, prescribing all matters required or permitted by the Act to be prescribed or necessary or convenient to be prescribed for carrying out or giving effect to the Act.
Subsection 9(3) of the Act provides that before making regulations for the purposes of section 6 the Governor-General shall take into consideration any relevant recommendation made
to the Minister by the growers’ organization, the Grains Council of Australia (GCA).
The currently prescribed rate of levy operative since 1 September 1988 is 45 cents per tonne.
The GCA has presented a submission to the Minister requesting that the rate of levy be increased by 7 cents to 52 cents per tonne commencing for the 1989-90 season.
The industry’s request to increase the levy accords with the Government’s objective of encouraging rural industries to increase their contribution for research to 0.5% of the industry’s Gross Value of Production (GVP). The increase in the prescribed rate of levy represents an increase from 0.26% to 0.3% of the industry’s estimated GVP for 1989-90.
Section 7 of the Rural Industries Research Act 1985 (the Research Act) provides that barley levy money be paid into the Barley Research Trust Fund and subsection 9(2) of the Research Act provides that the Barley Research Committee in each mainland State may approve the payment of money out of that Trust Fund for the purposes of research and development activities in respect of the barley industry.
The Commonwealth Government contributes matching amounts to cover research expenditure recommended by the Barley Research Council and approved by the Minister.
In any one financial year the Commonwealth contribution is limited to 0.5% of the GVP. Estimated Commonwealth expenditure for 1989-90 is $1.6 million. Increased funding to meet estimated Commonwealth matching obligations in 1989-90 resulting from the proposed increased levy is provided for in the 1989-90 Budget.
The proposed Barley Research Levy Regulations (Amendment) to increase the rate of levy to 52 cents per tonne is to apply from 1 October 1989.
Overview
The Barley Research Levy Act 1980 was enacted to establish a levy on barley delivered by growers, which funds research and development activities for the barley industry. This levy is designed to ensure that the industry contributes to its own research and development, with the Commonwealth Government matching industry contributions up to a certain percentage of the industry's Gross Value of Production. The Act was introduced to address the need for dedicated funding to support research and development in the barley industry, ensuring that growers' interests are represented in research initiatives. The Barley Research Levy Regulations (Amendment) 1989, issued under the authority of the Minister for Resources, aim to adjust the rate of the levy to better align with the government’s objective of increasing industry contributions to research. The proposed amendment increases the levy from 45 cents to 52 cents per tonne, reflecting an increase from 0.26% to 0.3% of the industry’s estimated Gross Value of Production for 1989-90. This adjustment is intended to meet the government's objective of encouraging rural industries to increase their research contributions while ensuring adequate funding for research activities.
Scope and Application
The Barley Research Levy Act 1980, as amended by the Barley Research Levy Regulations (Amendment) Statutory Rules 1989 No. 246, applies to barley growers who deliver barley to another person, excluding transactions for storage on behalf of the grower. The Act imposes a levy on such transactions, with the current rate set at 45 cents per tonne since 1 September 1988, but is being amended to increase this rate to 52 cents per tonne from 1 October 1989. The Act allows the Governor-General to make regulations in line with its provisions, considering recommendations from the Grains Council of Australia. The funds collected from the levy are directed into the Barley Research Trust Fund, from which the Barley Research Committee in each mainland State can approve payments for research and development activities related to the barley industry. Additionally, the Commonwealth Government matches funds from the levy to a maximum of 0.5% of the industry's Gross Value of Production each financial year.
Key Provisions
The Barley Research Levy Act 1980 (the Act) contains several key sections that define its operation. Section 5 of the Act mandates a levy on barley when it is delivered by a grower to another person, except when the delivery is for storage on behalf of the grower. This levy is designed to support research and development activities in the barley industry. Section 6 sets the upper limit of this levy at 75 cents per tonne. Subsection 9(1) of the Act allows the Governor-General to create regulations that are consistent with the Act, specifying necessary details for its implementation, while subsection 9(3) stipulates that any such regulation concerning the levy rate must consider recommendations from the Grains Council of Australia (GCA). The Act currently imposes a levy of 45 cents per tonne, a rate that has been in effect since 1 September 1988.
The Barley Research Levy Regulations (Amendment) propose an increase in the levy rate from 45 cents to 52 cents per tonne, effective from 1 October 1989. This amendment is in response to a recommendation from the GCA, aiming to align with the government’s goal of increasing industry contributions to research. This proposed increase represents a rise from 0.26% to 0.3% of the industry's estimated Gross Value of Production (GVP) for the 1989-90 season. The Barley Research Trust Fund, as outlined in Section 7 of the Rural Industries Research Act 1985, is where the levy money is deposited. The Barley Research Committee in each mainland State is authorised under subsection 9(2) of the Research Act to approve the disbursement of these funds for research and development activities within the barley industry.
The Barley Research Levy Regulations (Amendment) impose specific obligations on the parties involved. Growers and other entities delivering barley must comply with the amended levy rate of 52 cents per tonne, effective from 1 October 1989. This levy must be paid into the Barley Research Trust Fund, from which the Barley Research Committee can approve payments for research activities. Additionally, the Commonwealth Government is obligated to contribute matching funds, up to 0.5% of the industry's GVP, to cover research expenditures recommended by the Barley Research Council and approved by the Minister. For the 1989-90 financial year, the estimated Commonwealth expenditure is $1.6 million, with the budget already accounting for the increased funding required to meet these obligations.
Any breach of the provisions in the Barley Research Levy Act 1980 could result in significant legal consequences. While the Act itself does not explicitly state penalties for non-compliance, failure to remit the levy as required could lead to civil or criminal liability under other applicable laws, such as the Taxation Administration Act 1953. Penalties for such breaches could include fines or imprisonment, depending on the severity and intent of the non-compliance. It is essential for all parties to adhere to the statutory requirements to avoid these potential repercussions.